[Commerce Class Notes] on Concept of Principles of Management Pdf for Exam

The principle of Management refers to all those guidelines that are majorly implied in the workplace. They are the general guidelines that will help the organizations to function effectively.

Why Do We Need the Principles of Management?

There are certain guidelines that you are required to follow in the workplace and they are certainly designed for maintaining a social environment at a place.

• The Principles guide the managers to make rational decisions. There is a huge importance of the Principles of Management, the following are the key points. The Principles of Management helps in understanding the organizational functions better.

• When we talk about training the employees or even interns these guidelines are strictly to be followed.

• This not only trains the employees but it also believes in training the managers as managers are further going to manage most of the work.

• It is necessary to make the work of managers concrete, so for that, these principles are necessary.

• In different scenarios, the organization functions differently, and these principle guidelines help the organization to function differently in all the different scenarios.

Proceeding further, we will know about the basic concept of Management and the main principles of management.  

Basic Concept of Management

The basic concept of management is best detailed out in the words of famous writers and thinkers. Different writers and philosophers have different points of view on this management concept. So let us have a look at what different thinkers have a say in management. 

• According to Harold Koontz and Heinz Weihrich, management is the process of designing and maintaining the environment. Here the individuals work together in a group and thus they accomplish the selected goals by this. When we work in a group the work becomes easier the more people will indulge in a conversation or any discussion, the more work will be done more efficiently and easily. As the more brains will work together better is the result going to be.

•  According to Robert l. Trewely and M. Gene Newport, management can be defined as the process of planning, organizing, analyzing, and controlling the operations of the enterprise. This is done to achieve coordination of the human and the material resources which helps in the efficient and effective attainment of objectives.

• According to Kreitner, management is a process of working together to achieve the organizational objectives by efficiently using the resources which are limited in the hands. 

Key Terms in the Above Definitions 

So, from the definitions already illustrated above, we can sum the definition as – Management is a process of getting things done with a certain aim of achieving the goals effectively and efficiently. Important terms in this definition are as follows.

• Process: Process is the primary function or activities which the management performs to get the things done, to achieve the desired goals. To achieve any desired health you have to follow a particular process then only your work will be done properly. These guidelines help you to work in an effective way and get things done in a particular way as it is required by the employers.

•  Effectiveness: Effectiveness is focused on the end result. This basically means completing the given work.  In a workplace, if you are assigned any work it is your duty to complete the work on time and effectively. Principle management helps you to manage your time and work so that you can effectively work and submit your assignments and work before the deadlines. These management guidelines basically help you in this working effectively as you are aware if the rules and to follow it becomes your duty.

• Efficient: Efficiency does not only mean that the work is to be done correctly but also with minimum cost. Management is thus concerned with the efficient use of limited resources. Working using minimum resources is as important as working correctly. Because it is not like that the conditions are always going to be favorable. Many times we are going to face instances where it will be difficult to arrange resources but you are required to do the work with only that much resources. If you are working efficiently in the team then you can solve this problem easily. The resources may be less but if you are efficient at work the results are going to be best.

Basic Principles of Management

The basic principles of management are as follows

1. Division of work

Division of Work, this principle is associated with specializing the tasks of the employees. The employees are divided into their specialization and interest to harness the best result out of them.

2. Authority

Authority should be known to the whole organization; the managers should use the authority analytically. They should maintain a balance of authority over the organization structure.

3. Discipline

The organization must maintain the decorum of the workplace. The employees foremostly must be disciplined. Undisciplined employees can not give good results so discipline needs to be the top priority.

4. Unity of command

Order or command must come from one manager or leader to achieve the best results and the employees are required to follow the commands.

5. Unity of Direction

Their goals must be unified and directed. All the employees should be directed toward their common clear goal. They must not fuss with the organizational goals.

6. Subordination of Individual Interest to group Interest

The employees must be clearly stated about the organizational goals firstly. They should be explained that giving priority to the organizational goals will automatically secure their individual interest.

7. Remuneration

A correct remuneration policy must be initiated in the organization. The employees must be encouraged with the correct pay scale. Employees only put applications when they find that they will get good pay and not less than what they deserve.

8. Centralization

The orders must be centralized. Priority orders must come down from the top level. For effective and accurate work the centralization of order is super necessary.

9. Scalar Chain

The scalar chain of the organization must be well defined. This will help in the easy functioning of the organization. As of now the employees will know whom to report and to whom to be accountable for. And the employer will also have the information that to whom they should connect for the work and they do not need to connect with the employers separately for the work. One person will be enough for transmitting information to him.

10. Order

The order must be clear and must avoid any confusion. Confusing orders will lead to improper work that is highly not applicable. Thus for effective work orders should be clear

11. Equity

Equity is mandatory for the organization to work in peace. All the employees regardless of the level must be treated fairly. There should not be any discrimination among the employees in the workplace. Only if all are treated equally a peaceful working environment can be created. For employers, all employees should be equally important and he needs to work with them on a fair basis.

12. Stability of Tenure of Personnel

There should not be a fear in the mind of employees to get removed, only then they can work properly without any fear and with full concentration. The employee should be regular and his absentee ratio is required to be low because those who are regular show how much interest they are taking in doing the work and how effectively they can perform.

13. Initiative

The basic quality that an employer searches for in his employee is that the person can initiate new ideas to work effectively on the work. Employers always prefer those employees who are challenging enough and are ready to take initiative to make their workplace a better and more challenging one.

14. Morale 

Any company, whether small or large, always looks for those employees that have high morale. Because only these kinds of employees can maintain a decent environment in the workplace. Thus, making it a better place to work in.